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To: LincolnLover

"Why settle for, say, 3% GNP growth in this country being classified as 'healthy'? Why not 6? Why not more?"

Thank you! It is great to see someone who sees the big picture. Tom Delay has proposed establishing a goal of doubling the US economy over the next 15 years. To do that, he quite rightly says you need more than tax cuts - you need FTR (Fundamental Tax Reform).

According to Dr. Dale Jorgenson, former chairman of Harvard's department of economics, GDP growth would be 10.5% in the first full year after the FairTax is implemented. The second year it would decline to something like 8 - 9%, if memory serves. It would gradually decline but even 10 years out, the rate of growth would still be about a half percentage point higher than it would be under a continuation of the current system and would stay there indefinitely. Of course, by that time, the total economy would be 1/4 to 1/3 larger than it would otherwise have been.

That rate of economic growth would make a huge difference in most of the economic challenges that we see today - the federal budget deficit, the trade deficit, the lack of good paying jobs in our economy.


399 posted on 11/05/2004 3:42:40 PM PST by phil_will1
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To: phil_will1

Also, there's the obvious. The "little guy": Wow! by eliminating the IRS I've done so much better and so has everybody I know. Lets eliminate some more alphabet agencies. And lower the NRST to boot!


405 posted on 11/05/2004 4:11:37 PM PST by Zon
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To: phil_will1
According to Dr. Dale Jorgenson, former chairman of Harvard's department of economics, ...

Are you sure you fools want to gamble the entire US economy one man's unsubstantiated guess?

410 posted on 11/05/2004 7:26:33 PM PST by balrog666 (Lack of money is the root of all evil.)
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